In May this year, SLDC had refused TPC permission to use its power to be distributed through its own distribution arm. Instead, the SLDC directed TPC to make that quota available to R-Infra consumers in Mumbai's western suburbs.
TPC challenged the decision in the Bombay HC. It argued that the government cannot direct the generating company to sell power to any particular licensee as it would amount to regulation of generation activity. It blamed the SLDC for not performing its statutory duty under the pretext that the matter has been referred by the state government to the regulatory commission. The refusal by the SLDC would bring back the licence raj through the back door, it felt. The HC, while hearing the petition, allowed TPC to approach the Central Electricity Regulatory Commission (CERC) to challenge the SLDC order, that denied permission to sell its power to TPC's distribution arm.
The HC granted liberty to TPC to challenge SLDC's refusal to schedule the 100 mw of power to TPC before the MERC.
It also set a time frame of six weeks for the MERC, to decide on TPCs petition. The MERC will have to decide on Tata Power's petition within six weeks "without being prejudiced by any other proceedings pending before it including the reference made to Competition Commission of India by MERC," explained the HC.
Source- Economic Times